The Bandeiras Company, a merchandising firm, has budgeted its activity for December according to the following information:
- Sales at $560,000, all for cash.
- Merchandise inventory on November 30 was $303,000.
- Budgeted depreciation for December is $38,000.
- The cash balance at December 1 was $30,000.
- Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.
- The planned merchandise inventory on December 31 is $268,000.
- The invoice cost for merchandise purchases represents 70% of the sales price. All purchases are paid for in cash.
The budgeted cash disbursements for December are what?:
Cash Disbursement is
Merchandise Purchase = ...
This solution explains in a neat and step-wise manner how to calculate the budgeted cash disbursements for December. All calculations and the answer are provided.